Generally, when we contract with another party the law provides rights and remedies for both parties, but not for anyone else. This is sometimes known as the principle of privity of contract. Although other people may be affected by the contract, they are not treated as being a party to it. But there is another principle, that of freedom of contract, which is also relevant: it would allow the contracting parties, if they so wish, to provide rights under the contract for third parties. The way in which these two principles interact is at the heart of this Discussion Paper. Although, like most other European jurisdictions, Scots law has, for centuries, recognised third party rights in certain situations, it needs modernisation: much of the case law is very old, and it is neither clear nor comprehensive. Many common law jurisdictions, such as England & Wales and New Zealand have recently introduced statutory third party rights for the first time, while longer-established rules elsewhere have also been refreshed. Prompted by comments from solicitors and others that the Scots law is too inflexible and uncertain, the Scottish Law Commission has carried out a thorough review. This paper present their proposals for reform and invites discussion